Insured Declared Value is the maximum Sum Assured payable by the insurer on total loss of vehicle. IDV is the as close to the current market value of the vehicle. If the vehicle suffers total loss, IDV is the compensation that the insurer will provide to the policyholder.
IDV is calculated as manufacturer’s listed selling price minus depreciation. As per the tariff regulations, the depreciation follows a fixed percentage for each year post the sale of the vehicle.
General Insurance Council aims to standardise the IDV for a particular make/model/variant of a vehicle (currently only 4 wheelers - private cars) for a particular age of the vehicle in a particular state, that will be used across the general insurance industry. The corresponding values will be shared by all insurers on a monthly basis.
A portal for IDV for use by the public to understand the value that will be provided by the insurer is available on the GI Council website.